US carrier Sun Country Airlines anticipates taking delivery next year of eight additional Boeing 737-800 cargo aircraft to fly on behalf of Amazon.
During the Minneapolis-based carrier’s third-quarter earnings call on 31 October, chief executive Jude Bricker said that the first 737 Freighter is expected to be delivered in late March, with the eighth due in the fourth quarter of next year.
“So, it’s a rapid ramp-up during the summer months of 2025, and by the end of next year all the aircraft should be operating and the rate changes should be fully in place,” Bricker says.
In June, Sun Country signed an amended air transport services agreement with Amazon, extending the contract through 2030 with options to extend the terms through 2037.
Under the agreement, Sun Country’s cargo arm will grow to 20 aircraft and Sun Country will benefit from escalating pay rates from Amazon.
The carrier had 44 737s in its passenger fleet as of 30 September, in addition to seven aircraft on lease to unaffiliated airlines.
“Our diversified business model is unique in the airline industry,” Bricker says. “Due to the predictability of our chartered cargo businesses, we were able to deliver the most flexible scheduled service capacity in the industry.”
Sun Country reports its ninth consecutive profitable quarter, as it made a modest $2.3 million during the July-September period – down from $7.6 million in the same three months of last year.
Revenues were roughly flat, as Sun Country generated about $249 million during the third quarters of this year and 2023.
The company is forecasting year-on-year revenue growth of 2-6% for the fourth quarter, and for block-hour flying to be up 2-5% during the period.
”Based on current inputs, I remain bullish on 2025, as well,” Bricker says.
He notes that a common topic on airline quarterly calls has been restricted availability of aircraft due to Boeing and Airbus delivery delays. But Sun Country’s fleet growth will be unhindered by OEM production problems as aircraft being leased to other operators will return to its fleet.
“Again, to draw a distinction with our business, all of the aircraft supporting our fleet growth for 2025 and 2026 are currently in operation with other carriers,” Bricker says. “They’re either on our balance sheet as leased out until they are redelivered or committed through our cargo programme.”
